Business Valuation and Bankruptcy

by Ian Ratner; Grant T. Stein; John C. Weitnauer

• ISBN13: 9780470564448
• ISBN10: 047056444X
• Format: eBook
• Copyright: 2009-10-01
• Publisher: Wiley

Summary

An essential guide to business valuation and bankruptcyBusiness Valuation and Bankruptcy helps you-whether you are an accountant dealing with a troubled company, a lender, an investor, a bankruptcy and restructuring lawyer/financial advisor, or a private equity player-to focus on solving everyday and case determinative disputes when creditors, lenders, and debtors have differing views of value.Introducing valuation issues early on in the restructuring/bankruptcy process so you can plan accordingly, this book offers Many real life case examples, case descriptions, and tables to demonstrate the applicable sections of the Bankruptcy Laws A review of the methods, applications, pros and cons of restructuring with the basic tools to understanding it A description of the life cycle of a troubled company and the various stages of a restructuring An analysis of the valuation issues that confront practitioners in the real world of application of the lawBusiness Valuation and Bankruptcy is written in terms that are common to bankruptcy professionals and is essential, timely reading for players in the bankruptcy and restructuring environment.

Table of Contents

Preface

Introduction

The Troubled Company Continuum

Operational and Financial Disstress

The Troubled Company Response

Valuation in Reorganization or Bankruptcy

Conclusion

Industry Practitioners and Standards

Professional Organizations and Business Valuation Standards

Business Valuation Practitioners and Certifications

Conclusion

Notes

The Basics of Business Valuation

The Purpose of the Valuation

Standard of Value

Premise of Value - Going Concern or Liquidation

Valuation Approaches

Fundamentals

Conclusion

Notes

Income Approach

Discounted Cash Flow Method

Capitalized Cash Flow Method

Conclusion

Notes

Market Approach

Guideline Company Method

Comparable Transaction Method

Conclusion

United States Bankruptcy Code

Commencement of a Bankruptcy Case and Filing of Schedules

of the Bankruptcy Code

of the Bankruptcy Code

Avoiding Powers under the Bankruptcy Code - Preferences

Avoiding Powers under the Bankruptcy Code - Fraudulent Transfers

Valuation Principles from the Bankruptcy Courts

Conclusion

Notes

Valuations in Bankruptcy as of the Date of the Hearing

Introduction

Relief from the Automatic Stay and Adequate Protection § 363 Sales

Use of Cash Collateral

Disclosure Statement

Plan Confirmation - Feasibility

Plan Confirmation - Best Interests of Creditors Test

Plan Confirmation - Cram Down

Conclusion

Notes

Valuations in Bankruptcy at a Time in the Past - Avoidance Actions

Overview

Avoidance Actions - Preferences

Avoidance Actions - Fraudulent Transfers

The Applicable Legal Tests for Insolvency

Insolvency Test: The Valuation of Debts

The Insolvency Test: Valuation of Assets

Proof of Insolvency by Retrojection

The Insolvency Test: Comparing Assets and Debts

Is the Public Market's Assessment in the Past Conclusive Proof of Solvency, Even If the Company Later Fails?

Use of Hindsight in the Valuation Process

Conclusion

Notes

Solvency Opinions

Introduction

Who uses Solvency Opinions?

Solvency Opinion Preparation

Solvency Metrics

Case Studies

Conclusion

Notes

Daubert

Challenges to Experts or Their Testimony

Lack of Relevance

Practical Lessons from Daubert Cases for Experts and Lawyers

Conclusion

Notes

Appendix

AICPA Statement on Standards for Valuation Services No. 1, Valuation of a Business, Business Ownership Interest, Security, or Intangible Asset

Index

Table of Contents provided by Publisher. All Rights Reserved.